Arkansas allows you take a subtraction for your retirement income for up to $6,000 on your state return. If you are filing as married filing jointly and your spouse receives retirement as well, you are both entitled to a $6,000 subtraction on your Arkansas return for your retirement income.
The program will not automatically deduct this income, you will have to make a manual entry within the state section.
To make this manual entry, go to:
- State Section
- Subtractions from Income
- Pension Exclusion
For your convenience, the federal amount of the retirement income is shown for you to refer to.
See also Is my military pension/retirement income taxable to Arkansas?